Saab clings on with new funding

Saab has been forced to halt production again, but hopes to restart factory lines next week after new funding is secured.

Saab's owner, Spyker, says it has secured a €120 million investment from Chinese company Hawtai, as well as a €30 million loan, and hopes to restart production of cars next week.

Spyker's boss, Victor Muller, said the partnership with Hawtai: 'Allows Saab Automobile on one hand to continue executing its business plan, while on the other hand it allows it to enter the Chinese car market.'

Mr Muller described the production stoppages as painful and said: 'We will make it our top priority to restore the confidence of our suppliers, dealers and partners and apologise to them as well as to our dedicated employees for the disruptions that have occurred.'

Despite the new funding, Muller said Saab is now unlikely to meet its production target of 80,000 new cars.

The company plans to launch the SportCombi estate version of the 9-5 this summer and the all-new 9-3 compact executive in 2012.